Novo Vs PNC Bank Vs CitiBank — How I Found The Best Business Bank Account

No matter if you’re an entrepreneur, freelancer, or small business owner, controlling your money should be priority number one.

Luckily, today there are lots of banks aimed at our needs. Many offer low fees, digital tools, and features made for modest startups and solos instead of big companies.

As a fellow small business owner, I know picking a bank can seem scary at first when starting out. All the options want our business, but you’ve got to dig into what truly fits.

I’ll dig into 3 banks I’ve used and why I had to fire two well-known banks before I found a solution that truly fit my needs and how I found them.

Let’s go for a ride!

About Novo Bank, Some Background

Novo is specifically tailored to cater to the unique needs of small businesses and entrepreneurs. Located in the bustling heart of New York City, this modern banking institution has quickly made a name for itself, offering a fresh perspective on banking solutions.

Founded in 2016 by visionaries Michael Rangel and Tyler McIntyre, the inception of Novo Bank was driven by a clear purpose. They observed the hurdles and inefficiencies small businesses often encountered with traditional banking systems. These challenges, ranging from complex processes to a lack of specialized services, inspired the duo to create a bank that would address these gaps.

Over the years, Novo Bank has not only established itself as a reliable banking platform but has also introduced a range of innovative tools and services. These offerings are meticulously designed to streamline financial management, making it easier for businesses to focus on growth and expansion. The bank’s commitment to revolutionizing the banking experience for its clientele is evident in its rapid rise and the positive feedback it continues to receive from its user base.

Pros

1. No monthly fees or minimum balance requirements
2. Unlimited free transactions like deposits, transfers, and withdrawals
3. Free debit card included to access your funds
4. Digital tools to manage invoices, expenses, accounting
5. Instant transaction notifications and balances
6. Seamless integration with platforms like Stripe and QuickBooks
7. Top-rated mobile app to bank on the go
8. Fast account opening can be done completely online

Cons

1. Limited physical branch locations for in-person banking
2. Interest rates on deposits are low compared to savings accounts at other banks

PNC Bank, And It’s History

PNC Bank, with its roots in Pittsburgh, Pennsylvania, stands as one of the major banking giants in the U.S. Its journey began in 1845 when it was established as the Pittsburgh Trust and Savings Company, marking its foundational step in the banking sector.

The bank’s identity underwent a significant transformation in 1983. During this year, it combined forces with two other banks, leading to the birth of the PNC Bank we recognize today. This merger was a pivotal moment, setting the stage for its expansive growth in the subsequent years.

Beyond the realm of standard banking, PNC has carved a niche for itself in the financial world. It’s particularly renowned for its unwavering support to small businesses, offering them tailored financial solutions. Additionally, PNC provides a diverse range of services, catering to the varied needs of its clientele.

Pros

1. Over 3,000 branches available for in-person banking
2. No monthly service fee if you maintain a $500 minimum balance
3. Online and mobile banking tools for convenience
4. Variety of account options depending on your needs
5. Access to lines of credit and business loans
6. Merchant services available for accepting payments

Cons

1. $500 minimum balance to avoid monthly fees
2. Transaction fees apply if you go over 500 debits/checks per month
3. Low APY earned on deposit balances

Citibank And How It Fits In

Citibank, N.A. (where “N.A.” stands for “National Association”) is a major banking subsidiary of the multinational financial services corporation, Citigroup. Established in 1812 as the City Bank of New York, it later transitioned to the First National City Bank of New York. The bank’s roots trace back to its founding in New York City, and it has since expanded its reach globally. Today, Citibank boasts a presence in 19 countries with 2,649 branches, of which 723 are located in the United States. Notably, Citibank is recognized as the third-largest bank in the U.S. based on its assets.

Citibank’s history is rich and spans over two centuries. Initially known as the City Bank of New York, its first president was statesman Samuel Osgood. Over the years, the bank underwent several name changes and expansions. By the late 19th and early 20th centuries, it had grown to become one of the largest banks in the U.S. and played a significant role in financing major projects, including the Panama Canal.

The bank’s innovative approach to banking is evident in its early adoption of technology. In the 1970s, Citibank was among the pioneers in introducing automatic teller machines (ATMs), providing customers with 24/7 access to cash. Furthermore, in the realm of online banking, Citibank was ahead of its time, offering online account access as early as the 1980s.

Pros

1. No monthly maintenance fees
2. Free incoming domestic wire transfers
3. Robust mobile banking app with deposit capabilities
4. Access to lines of credit and business loans
5. Rewards program for cashback on purchases
6. Ability to organize multiple accounts in one online dashboard

Cons

1. $500 minimum opening deposit required
2. No interest earned on account balances
3. Outgoing domestic wire fees apply
4. Limited physical branches compared to other major banks

My PNC Bank Nightmare

Opening my PNC business checking account was a total hassle from the start. Unlike Novo where I could apply online, PNC forced me to schedule an appointment at a branch during their normal 9–5 hours. So I had to take time away from my business just to open the account!

At the appointment, the associate bombarded me with unnecessary paperwork and upsells. I just wanted a simple checking account, not every ancillary service under the sun. It took over an hour before I could finally leave with an activated account.

But the headaches continued once the account was open. PNC hit me with a $12 monthly service fee because my balance drifted below their required $500 minimum. I didn’t recall being clearly informed about this recurring fee during sign up.

When I called PNC to ask about waiving the fee, I got bounced around their phone tree for 20 minutes before reaching someone. The rep rigidly enforced the minimum balance policy with no exceptions. I pleaded my case but got nowhere with their inflexible customer service.

The endless fees and lack of support were draining. I regretted ever opening that PNC account. Between appointment requirements, surprise charges, and poor service, they made banking a burden rather than simplifying it for my small business.

Citibank Wasn’t Much Better

I opened a Citi business checking account because they advertised seamless integrations with QuickBooks and other platforms I use to run my small business. This integration was essential for smoothly managing my finances.

However, the Citi integration totally failed in practice. Transactions weren’t syncing over to QuickBooks properly. As a result, my accounting records were a mess.

I had no idea that some payments were not going through until Citi hit me with multiple overdraft fees of $35 each. Apparently their broken integration caused some debits to not get recorded in QuickBooks, so I missed making certain payments.

When I contacted Citi support about the overdraft charges and integration problems, they were utterly unhelpful. I got bounced between departments with no real solutions. They refused to refund any of the unfair overdraft fees their glitchy system caused.

After wasting hours on the phone with Citi’s customer service, I finally gave up and closed my account. Their misleading claims about seamless integrations and lack of accountability for errors cost me time, money, and sanity.

I’m done dealing with large banks like Citi that see me as just another number.

Finally Happy With Novo’s Small Business Checking Account

After the terrible experiences I had with PNC and Citi Bank, opening a business account with Novo Bank was a breath of fresh air. The entire process took just minutes online and required minimal information to get up and running.

Right away, I appreciated Novo’s transparent, no-fee pricing. No surprise charges or balance requirements — just simple, free business checking. Novo’s interface also smoothly integrated my accounting software without any hiccups.

The few times I’ve needed assistance, Novo’s customer support agents were knowledgeable and solved my issues quickly. No frustrating phone trees or getting bounced around to different departments.

Novo’s mobile app makes managing my account easy from anywhere too. I can monitor balances, transfer funds, deposit checks, and more all on my phone seamlessly.

After dealing with the major banks, I’m relieved to finally have a business checking account with Novo that simplifies my financial management instead of complicating it. Everything just works as it should without the fees and frustrations I experienced before.

Novo embodies how a modern, digital-first bank should operate to help entrepreneurs and small businesses thrive.

Novo Vs PNC Bank Vs Citibank. How Do They Stack Up Side By Side?

Opening an Account

As a busy entrepreneur, I loved how fast and easy it was to open my Novo account completely online. PNC and Citi still made me visit a branch and deal with paperwork. All I needed for Novo was basic business info to get up and running in minutes.

Costs

Novo offers free checking without monthly fees, period. PNC and Citi charged me recurring fees unless I kept minimum balances. Novo saved me money each month without me worrying about balances.

Minimum Balance

I could open my Novo account without depositing a dime. PNC forced me to keep $500 to avoid fees. And Citi required $500 just to open an account with them. Novo let me start my account no matter how much I initially deposited.

Linking Other Services

Novo seamlessly connected my accounts to platforms like QuickBooks with a few clicks. The integrations weren’t as seamless at PNC and Citi and took more setup.

Earning Interest

Let’s be real — none of them pay meaningful interest on checking balances. But Novo had slightly better yields on their savings options. Of course, I don’t use my checking account to earn interest anyway.

Safety

All my money was FDIC insured up to $250k at any of these banks. Novo is smaller, so the big banks have a longer track record. But Novo uses the same standard security protocols and encryption.

Cash Needs

PNC and Citi have way more branches nationwide, so they’re better for cash transactions. Novo is digital-first, so I relied on ATMs for cash needs.

Managing the Account

Between Novo’s stellar app and online tools, banking is a breeze for me. PNC and Citi work fine digitally, but Novo’s tech is simply more intuitive and user-friendly.

Account Selection

PNC and Citi have more account options like interest-bearing checking. But Novo’s straightforward free checking account handled all my small business needs.

Customer Service

I never had issues reaching fast, human support at Novo via phone or chat. Can’t say the same about the maze of automated menus at PNC and Citi.

Overdraft Policies

Novo doesn’t allow overdrafts on business accounts — no surprise fees. PNC and Citi offer overdraft but hit you with high charges when you overspend.

Transaction Limits

Novo lets me complete as many transactions as needed without arbitrary caps. PNC limited me to 500 debits/checks per month before extra fees applied.

Sending Money

ACH transfers and incoming wires were free with Novo. Citi charged me for any outgoing domestic wire transfers, which added up.

Borrowing Money

PNC and Citi have more business loan and credit products, so they win for financing needs. Novo offers fewer lending options — their main focus is deposit accounts.

Monitoring Finances

For tracking expenses and financial reporting, Novo provided me with much more insightful dashboards versus the basic reporting from PNC and Citi.

How Easy Was It To Switch Everything To Novo?

Here’s how seamless it was for me to switch my small business checking account to Novo Bank…

After having such terrible experiences with PNC Bank and CitiBank, I couldn’t wait to move my business accounts to Novo. But I was worried it might be a big hassle to switch banks completely.

Turns out I had nothing to fear. Novo made it incredibly easy to transfer my accounts over in just a few steps.

First, I opened my free Novo small business checking account online in about 5 minutes. It required no paperwork or visiting a branch, unlike my previous banks.

Next, I linked my existing PNC and Citi accounts to my new Novo account and scheduled automatic transfers to pull my balances over. This took just a few clicks through Novo’s user-friendly interface.

Once the transfers were set up, I went into my old PNC and Citi accounts and closed them out for good. No pushback or fees from the banks, since the accounts had zero balances.

And that was it! Within two business days, all my funds were safely in my new Novo Bank account. I was up and running with better business banking in under a week.

Switching to Novo provided a refreshing contrast to my earlier banking experiences. Where PNC and Citi made things difficult, Novo made it effortless to move my accounts over.

Here Are My Final Thoughts

Every small company has different needs when it comes to picking a bank. You’ve got to weigh up the pros and cons to know what fits best.

Some banks have no monthly fees but limit transactions. Others may pay interest but require minimum balances. You also want something that’s easy to use online and on your phone.

After dealing with PNC and Citi, I recommend Novo Bank to any fellow entrepreneur. With Novo, you pay zero monthly fees or balance minimums. This saves you cash that can get invested back in the business instead.

Since Novo is totally digital, their tech tools help manage your money simply and smoothly. Novo’s mobile app and website are designed to be user-friendly from day one. No hassle or learning curve.

If you want straightforward business banking that saves time and headaches, I’d say give Novo a close look. They offer exactly what most lean startups and small outfits need to succeed and grow.